“If you can point to rising food prices, it is a sign that something is failing in the implicit contract between the government and the governed.” Professor (Josef Korbel School of International Studies, University of Denver) Cullen Hendrix, nonresident senior fellow, Peterson Institute for International Economics.
The United States is not alone, as global essentials like food, fuel, and many others are getting more expensive. Countries with Covid-depleted coffers struggle to respond while runaway inflation paves the way for the 2022 recession.
The Sri Lankan government doesn’t have sufficient funds to buy food, fuel, or medicine — fundamental essentials — leading to civil unrest and the depletion of Sri Lanka’s tourist business.
The ongoing war in Ukraine exposes the frailty of global commerce. Food and oil shortages ripple across the globe like a stone tossed into a placid pond.
Such instability shows no sign of letting up.
Retail giant Walmart acknowledges that “inflation-strapped consumers” are forced to buy need-to-have goods over nice-to-have items. As a result, they (as well as Target) are offering deep discounts on these items (fitness equipment, outdoor equipment, and TVs, to name a few).
The cryptoverse
Cryptocurrency
“[The] Market is outperforming right now on macro outlook,[forecast of [sic] economy as a whole],” said Katie Talati, director of research at Arca.
Bitcoin attempted a bull run closing in on the $24,000 level, only to fall short.
“Despite the slight pullback, Bitcoin is still technically strong. That means for now, [sic] this looks like a normal retracement after a solid 30% rally.” Marija Matic Weiss Crypto Daily
Altcoins
Ethereum saw its biggest two-day gain since January 2021, jumping at 29 percent before falling off the mark.
Polygon posted a 24 percent gain, up 64 percent.
ApeCoin saw a 16 percent gain on the announcement of the Bored apes team launch of its Metaverse gaming platform.
THORChain enjoys a 15 percent jump.
Tether found some stability since its crash a couple of months ago.
Meanwhile, the broader crypto market continued to benefit from traders dialing back wagers on Federal Reserve hikes after an ugly economic reading fueled concern about a US recession. The Fed’s attempt to control inflation has spooked crypto investors this year as the central bank raises interest rates, turning investors away from riskier investments such as crypto.
Blockchain
A decentralized data warehouse for blockchain applications, Space and Time, announced it raised $10 million in a seed funding round led by crypto investment firm Framework Ventures.
CEO/co-founder Nate Holiday says the company seeks to hire engineers to build out the platform. They look to develop a cryptographic protocol called proof-of-SQL (structured query language) program used to manage and interact with databases. Holiday said it will allow blockchain applications to generate analytical insight rapidly in a decentralized, low-cost, and secure way.
Not to be outdone, blockchain technology is very much in the recession forward, moving thick of the cryptoverse.
DeFi
Lido, a DAO (Decentralized Autonomous Organizations) non-custodial staking solution for the Ethereum, Terra, and Solana blockchains, announces plans to expand several of Ethereum’s layer 2 (L2) solutions. They will begin supporting Eth (Ethereum’s coin) by staking via bridges to L2s using a wrapped version of Lido’s token (wstETH).
According to Cryptonews, the team behind open-source blockchain Solana (SOL) is readying the public opening of its brick & mortar store in New York City. The company looks to promote the Solana blockchain and Web3 at large.
Cryptoslate published that Polygon has launched an Ethereum-compatible scaling (increasing transaction speed) solution called zkEVM. The proprietary program works on zero-knowledge proofs, enabling developers to deploy Ethereum smart contracts seamlessly.
The Decentralized Finance (DeFi) sector shows no signs of slowing down despite a recession.
Metaverse
“It isn’t only Silicon Valley that’s gripped by metaverse mania these days. Just as tech companies and corporations are scrambling to develop strategies for virtual worlds, many defense startups, contractors, and funders are increasingly talking up the metaverse, even if its definition and utility aren’t always clear.” Will Knight Senior Writer Wired
Bored Ape Yacht Club announces the launch of its Metaverse platform, Otherside. It is expected to be the most significant NFT industry drop ever.
Governments such as China and the United States are building their version of the metaverse as a virtual reality to train the military.
NFTs
The Non-Fungible Token (NFT) space took the cryptoverse by storm two years ago. Bored Ape Yacht Club and CryptoPunks found an audience, and the space has not looked back. Though impacted by the recession, the current year looks to finish strong.
Weiss Crypto Daily writer Jurica Dujmovic said, “However, as it happens in economic downturns and the bear markets that follow, investors realized that putting their money elsewhere was a more viable option toward growing their wealth in more challenging markets [like NFTs].”
Proof that NFTs are not done, a token gating approach comes from the NBAs Top Shot NFT collections. This net level of NFT offers owners access to exclusive benefits like product discounts, service features, and preferred at-game seating.
The Fed’s rate hikes and recession continue to drive the market. Still, amid such turndown, cryptocurrency is posting impressive gains, which builds speculation that (as these current crypto events show) might be (at least somewhat) recession-proof.
Follow along as I learn; maybe you will learn. Perhaps, together, we can explore the cryptoverse.
Disclaimer: I am an avid student of all things crypto. The cryptoverse caught my attention when COVID-19 captured the world and locked down the global economy. Since then, I have dedicated a portion of my time to learn about this currency — the currency of the future — and international business. As a writer, I have determined to journal my discoveries. I have chosen to write them in short, bite-sized articles to help anyone interested in learning about this space. These articles are not written in cryptoese or investments but easy-to-understand articles. I am not offering advice, simply the information I discovered on my unexpected journey into the cryptoverse. There could be something for the seasoned investor to glean from reading, but my focus is on the crypto-curious.
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